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Generic competitive strategies—An analytical approach

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  • Aneel Karnani

Abstract

The concept of generic strategies for gaining competitive advantage has received considerable attention recently in the business policy field. Two generic strategies usually mentioned are low cost position and highly differentiated position. This paper uses a game‐theoretic model of oligopolistic competition to provide analytical support for these generic strategies, and, in places, to refine the conclusions drawn from previous research in this field. Another conclusion derived from the model is that a superior cost or differentiation position leads to a larger market share, which in turn leads to higher profitability.

Suggested Citation

  • Aneel Karnani, 1984. "Generic competitive strategies—An analytical approach," Strategic Management Journal, Wiley Blackwell, vol. 5(4), pages 367-380, October.
    • Handle: RePEc:bla:stratm:v:5:y:1984:i:4:p:367-380
    DOI: 10.1002/smj.4250050406
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    Cited by:

    1. Xhavit Islami & Naim Mustafa & Marija Topuzovska Latkovikj, 2020. "Linking Porter’s generic strategies to firm performance," Future Business Journal, Springer, vol. 6(1), pages 1-15, December.
    2. Photis M. Panayides, 2003. "Competitive strategies and organizational performance in ship management," Maritime Policy & Management, Taylor & Francis Journals, vol. 30(2), pages 123-140, January.
    3. Papazoglou, Michalis E. & Spanos, Yiannis E., 2021. "“Influential knowledge and financial performance: The role of time and rivals’ absorptive capacity”," Technovation, Elsevier, vol. 102(C).

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